Tehri Hydro Development Corporation (THDC), which is developing mega 2400 Mw Tehri dam, has evinced interest to build the 600Mw Kishau hydel project.
The project has been hanging fire for the past two decades.
THDC is in touch with state government officials to get the project contract.
“We want Kishau to be developed by a PSU,” a top official here said.
A decision in this regard is expected shortly.
The move follows the agreement between Uttarakhand and Himachal Pradesh over the multi-purpose Kishau project.
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The two states in July agreed that the company building the project would divide the royalty equally and sell the remaining 88 per cent power to them at a rate decided by the Central Electricity Regulatory Commission (CERC).
The Kishau project is on the river Tons, a tributary of Yamuna, near here.
The cost of project is being estimated at Rs 6000 crore and height of the dam will be 236 metres.
The project would provide irrigation water to five basin states including Haryana, Rajasthan, Delhi, Uttar Pradesh and Uttarakhand.
Delhi will get the maximum benefit since it will also get drinking water from it, officials said.
THDC officials here claimed that the dam would also help in regulating water supply to all projects downstream on the river.